Last meeting for Eureka City Manager David Tyson; council set to discuss pension funding bonds

At its final meeting of the year Tuesday, the Eureka City Council will be saying good-bye to longtime City Manager David Tyson.

"Well, we are certainly going to miss him," Mayor Frank Jager said.

Tyson has worked for the city for nearly 23 years, starting in the finance department and has been city manager since 2000. He announced in May that he would be retiring on Dec. 31, after his contract with the city runs out.

"He has a wealth of institutional knowledge and experience with the city, and those will be big shoes to fill," Jager said. "On the other hand, that gives a chance for a new start with a new city manager. I am optimistic things will continue to move forward in a positive fashion."

Stepping in to fill Tyson's shoes on Jan. 1 will be Bill Panos. The 49-year-old comes to Eureka from Sacramento, where he worked as public works and port director for the city of West Sacramento since 2007.

Marking another shift in leadership, the council will also be electing a new mayor pro tem Tuesday night. Jager said he believes Linda Atkins' name might come up for the position. Atkins officially retook her seat representing Ward 2 for a second term on Dec. 4, after winning a close race against challenger Joe Bonino.

"I think it is her turn," Jager said. "She has been on the council for four years. That would be my choice, she's ready for it."

On the business side, the council will consider approving a resolution allowing the city to issue pension funding bonds and refund the California Public Employees' Retirement System Public Safety side funds. According to a staff report, the action would save the city an estimated $1.4 million.

The city is currently seeking a court decision, the staff report said, that would allow the city to approve the issuance of the bonds without the standard two-thirds vote of the public.

Jager stressed Friday that "none of our bonds are in that kind of category" with capital appreciation bonds. Critics have recently slammed school districts across the state for using CABs -- tools used to receive bond proceeds immediately -- due to the exorbitant interest rates, which take up to 40 years to pay off.

"We want to assure the public that we are not involved in any of those kinds of high interest bonds," he said. "That is something we will be addressing at Tuesday's council meeting, given the questions that have been raised."